Hindustan Zinc shares surge 5% as silver hits fresh lifetime highs on Fed's rate cut hopes

The shares of Hindustan Zinc surged nearly 5 percent on December 10 as silver hit fresh lifetime highs amid rising hopes for a rate cut by the US Federal Reserve.

The shares of the Vedanta Group-company rose to Rs 515 apiece in the morning trading hours of Wednesday, the highest level seen by the stock in more than seven weeks.

Silver hits fresh lifetime highs:

Silver hit new all-time highs on December 10. Silver futures with March expiry rose around 1.5 percent to hit a fresh lifetime high of Rs 1,90,799 per kilogram. The future contracts with May expiry hit Rs 1,93,299 per kg for the first time ever.

Spot silver prices crossed $60 for the first time and continued to hover near $61 an ounce, marking a 32 percent jump in the last 24 hours.

"In recent sessions, the silver price has seen a new high, with industrial utilization of silver, global supply constraints, and investment demand representing the driving force behind this rally. Silver has outperformed gold, with increasing numbers of investors opting for silver," said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.

Hindustan Zinc share price:

Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity. The sharp rise in the bullion's prices is expected to further boost the stock.

Hindustan Zinc shares have gained over 1 percent in the past five days, and nearly 6 percent in the past one month. The stock fell over 4 percent in the past six months, but are up more than 15 percent in 2025 so far.

The stock currently has a P/E ratio of over 20, and a market capitalisation of more than Rs 2.16 lakh crore.